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Can I receive payment using my personal bank account?

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the19trier
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Can I receive payment using my personal bank account?

Post by the19trier » Tue, 07 Jun 2011 10:19 am

My firm is an LLP registered in SG, and its business is entirely oversea. I need to receive payment from oversea companies and pay oversea companies/people for their service. Can the payments go through my personal bank account in Singapore or I need to set up a company account for some parts of the payments?

And what is the easiest approach to transfer money from Singapore to other countries?

Thank you.
Last edited by the19trier on Wed, 08 Jun 2011 12:36 am, edited 2 times in total.

beppi
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Post by beppi » Tue, 07 Jun 2011 2:36 pm

Sorry, nobody on a Singapore forum will be able to tell you the legal situation and available banking services/regulations in the country where your business is registered, even if we knew the name of that country!

If you conduct business in Singapore, you have to register it here. Then you can open a bank account for it.

the19trier
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Post by the19trier » Wed, 08 Jun 2011 12:38 am

Bep, thank you. The firm is registered in SG, and its business is abroad. I edited my post again to make it clear.
beppi wrote:Sorry, nobody on a Singapore forum will be able to tell you the legal situation and available banking services/regulations in the country where your business is registered, even if we knew the name of that country!

If you conduct business in Singapore, you have to register it here. Then you can open a bank account for it.

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Mad Scientist
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Post by Mad Scientist » Wed, 08 Jun 2011 4:52 am

the19trier wrote:Bep, thank you. The firm is registered in SG, and its business is abroad. I edited my post again to make it clear.
beppi wrote:Sorry, nobody on a Singapore forum will be able to tell you the legal situation and available banking services/regulations in the country where your business is registered, even if we knew the name of that country!

If you conduct business in Singapore, you have to register it here. Then you can open a bank account for it.
Have you read this link

www.acra.gov.sg

www.iras.gov.sg
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Strong Eagle
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Re: Can I receive payment using my personal bank account?

Post by Strong Eagle » Wed, 08 Jun 2011 9:42 am

the19trier wrote:My firm is an LLP registered in SG, and its business is entirely oversea. I need to receive payment from oversea companies and pay oversea companies/people for their service. Can the payments go through my personal bank account in Singapore or I need to set up a company account for some parts of the payments?

And what is the easiest approach to transfer money from Singapore to other countries?

Thank you.
There is no prohibition against using your personal account but it would be an accounting nightmare and it is unlikely you could ever get a set of audited books.

The main problem is that you would be co-mingling company and personal funds, and you would have to maintain very accurate records to prove to IRAS that you are not screwing them, tax wise, by shifting funds around.

As for shifting money... always a good question... you could take a look at xe.com for starters... not affiliated.

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Post by blogtowkay » Wed, 08 Jun 2011 10:12 am

Here's a pretty good guide:

http://www.guidemesingapore.com/incorpo ... tion-guide

Though personally would try to get some legal advice as well.

the19trier
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Re: Can I receive payment using my personal bank account?

Post by the19trier » Wed, 08 Jun 2011 10:20 am

Are you suggesting to use xe's service to transfer? http://www.xe.com/fx/benefits.php

Could you give an example or two about the nightmares of using personal account? If I keep all the invoices, it would be alright, or I need to do more to prove I am not screwing them?

Thank you.

f[/quote]

There is no prohibition against using your personal account but it would be an accounting nightmare and it is unlikely you could ever get a set of audited books.

The main problem is that you would be co-mingling company and personal funds, and you would have to maintain very accurate records to prove to IRAS that you are not screwing them, tax wise, by shifting funds around.

As for shifting money... always a good question... you could take a look at xe.com for starters... not affiliated.[/quote]

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ksl
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Post by ksl » Thu, 09 Jun 2011 2:29 am

I find it odd that your partner would accept this method of accounting to be honest.

Also have you been approved by MOM yet?


EntrePass will not be issued by MOM to a foreigner registering an LLP. Foreigner who wishes to set up an LLP and be present in Singapore to manage its operations is strongly advised to seek approval from MOM before registration. Even if you have successfully registered a business with ACRA, MOM may still refuse your application for a pass subsequently.

I would advise against complicating the business by paying into your own bank account, even if you do have invoices available.

There are also very strict rules for certain LLP in Singapore you need to read up on, though ACRA will enlighten you, So I would ask about the accounting policy too, considering you have a partner and or a manager here in Singapore. Though you still need an employment pass first if you don't have one and ACRA recommends you seek approval from MOM first before you register.
http://www.acra.gov.sg/NR/rdonlyres/5ED ... of2006.pdf

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